Nikolay Grigorev, from Brooklyn, pleaded guilty on Tuesday to conspiracy to defraud the U.S. for his part in an export scheme aimed at exporting electronic components to companies affiliated with the Russian military. Two accomplices, Nikita Arkipov and Artem Oloviannikov, are still at large.
Sanctioned Exports
According to a DoJ press release, Grigorev ‘utilized’ a Brooklyn-based corporate entity, Quality Life Cue LLC, to carry out the scheme. The defendants used this company to procure dual-use electronic components for entities located in Russia that are involved in the development and manufacturing of drones used by Russia in Ukraine.
“The FBI is relentless in its efforts to prevent sensitive, dual-use technology from being acquired by adversaries,” said FBI Deputy Director Paul Abbate. “The technologies in this case supported Russia’s war effort and poses a significant threat to the United States and its allies. The FBI continues to tirelessly pursue any illegal transfers that threaten national security and hold accountable those who violate the law.”
The Evidence
Between October 2021 and February 2022, QLC accounts controlled by Grigorev received wire transactions from a sanctioned Russian entity called SMT-iLogic that totaled approximately $272,830. Communications were discovered that contained explicit conversations discussing the defendant’s efforts to circumvent U.S. export restrictions, including the use of front companies in a third country, such as Kazakhstan.
In June 2023, a search warrant of Grigorev’s residence in Brooklyn resulted in the seizure of over 11,500 electronic components that had been purchased from the Brooklyn Company and were being prepared for illegal export.
Admission of Conspiracy
“As a result of today’s guilty plea, Grigorev faces a maximum penalty of five years in prison. A sentencing hearing has not yet been scheduled,” the press release stated. “A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.”
“Grigorev admitted today that he conspired to supply Russia with U.S.-sourced, dual-use technologies, knowing full well that his actions violated export controls and sanctions designed to stop those items from being sent to Russia and used in the production of drones like those found on the battlefields in Ukraine,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s guilty plea reaffirms that my office will pursue anyone who violates our export controls and threatens our national security.”
“In pleading guilty today, the defendant admitted he conspired to smuggle over $250,000 worth of sensitive American drone technology to Russian companies fueling Putin’s unlawful war against Ukraine,” said Deputy Attorney General Lisa Monaco. “Swift action by agents and prosecutors unraveled a web of fake orders and wire transfers to prevent over 11,500 electronic components from making their way to the Russian war machine. The Justice Department will continue to hold accountable those who defy our sanctions and export controls to support Russia’s unprovoked and unjustified aggression in Ukraine – whether they’re based in New York City or overseas.”
